This bill puts limits on how federal agencies can settle lawsuits. When an agency loses a court case and agrees to a settlement (called a consent decree), the bill says the settlement can't require the agency to do anything beyond what the court actually has the power to order. In other words, agencies can't use settlements as a backdoor way to expand what courts can make them do.

The bill also restricts who pays for the lawyers and court costs in these settlements. If a settlement results in new rules or guidance documents from the agency, the agency generally can't be forced to cover the other side's attorney fees and litigation expenses. This is meant to prevent settlements from becoming expensive for agencies in ways that might encourage them to agree to things they otherwise wouldn't. The practical effect is that it makes it harder for groups suing federal agencies to recover their legal costs through settlement agreements, which could discourage some lawsuits or make settlements harder to reach.

No Regulation Through Litigation Act of 2025

Cloud, Michael

No Regulation Through Litigation Act of 2025This bill specifies that a federal agency may not enter into a consent decree that exceeds the authority of the court that enters the order related to the decree. It also limits the inclusion of attorney fees or litigation costs&nbsp;in consent decrees or settlement agreements that result in a regulation or guidance document.&nbsp;